IDEAS home Printed from https://ideas.repec.org/a/eee/iburev/v25y2016i2p522-534.html
   My bibliography  Save this article

What drives the internationalization of Chinese SMEs? The joint effects of international entrepreneurship characteristics, network ties, and firm ownership

Author

Listed:
  • Zhang, Xiao
  • Ma, Xufei
  • Wang, Yue
  • Li, Xin
  • Huo, Dong

Abstract

The paper first investigates how Chinese small-to-medium enterprises’ (SMEs) network ties at home moderate the relationships between different international entrepreneurship (IE) characteristics and the degree of internationalization of the firm. The paper further explores how the Chinese SMEs’ ownership arrangement might explain the boundary conditions of the proposed moderating effects of network ties on the relationship between IE characteristics and internationalization. Findings of our empirical study generally support the hypotheses derived from our theoretical framework. The paper offers new insights into the internationalization of Chinese SMEs by ascertaining the differential contingent value of business versus political ties in the relationship between IE characteristics and internationalization and explores the bounds of our findings in terms of the ownership arrangement unique to the Chinese context.

Suggested Citation

  • Zhang, Xiao & Ma, Xufei & Wang, Yue & Li, Xin & Huo, Dong, 2016. "What drives the internationalization of Chinese SMEs? The joint effects of international entrepreneurship characteristics, network ties, and firm ownership," International Business Review, Elsevier, vol. 25(2), pages 522-534.
    • Handle: RePEc:eee:iburev:v:25:y:2016:i:2:p:522-534
    DOI: 10.1016/j.ibusrev.2015.09.001
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0969593115300214
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.ibusrev.2015.09.001?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. John A Mathews & Ivo Zander, 2007. "The international entrepreneurial dynamics of accelerated internationalisation," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 38(3), pages 387-403, May.
    2. Luo, Yadong & Xue, Qiuzhi & Han, Binjie, 2010. "How emerging market governments promote outward FDI: Experience from China," Journal of World Business, Elsevier, vol. 45(1), pages 68-79, January.
    3. Paul D Ellis, 2011. "Social ties and international entrepreneurship: Opportunities and constraints affecting firm internationalization," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 42(1), pages 99-127, January.
    4. Yasuhiro Yamakawa & Mike W. Peng & David L. Deeds, 2008. "What Drives New Ventures to Internationalize from Emerging to Developed Economies?," Entrepreneurship Theory and Practice, , vol. 32(1), pages 59-82, January.
    5. Hausman, Jerry & Hall, Bronwyn H & Griliches, Zvi, 1984. "Econometric Models for Count Data with an Application to the Patents-R&D Relationship," Econometrica, Econometric Society, vol. 52(4), pages 909-938, July.
    6. Stephanie A Fernhaber & Brett Anitra Gilbert & Patricia P McDougall, 2008. "International entrepreneurship and geographic location: an empirical examination of new venture internationalization," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 39(2), pages 267-290, March.
    7. Alon, Ilan & Child, John & Li, Shaomin & McIntyre, John R., 2011. "Globalization of Chinese Firms Theoretical Universalism or Particularism," Management and Organization Review, Cambridge University Press, vol. 7(02), pages 191-200, July.
    8. Kling, Gerhard & Weitzel, Utz, 2011. "The internationalization of Chinese companies: Firm characteristics, industry effects and corporate governance," Research in International Business and Finance, Elsevier, vol. 25(3), pages 357-372, September.
    9. Marian V Jones & Nicole E Coviello, 2005. "Internationalisation: conceptualising an entrepreneurial process of behaviour in time," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 36(3), pages 284-303, May.
    10. Ilan Alon & John Child & Shaomin Li & John R. McIntyre, 2011. "Globalization of Chinese Firms: Theoretical Universalism or Particularism," Management and Organization Review, The International Association for Chinese Management Research, vol. 7(2), pages 191-200, July.
    11. Jan Johanson & Jan-Erik Vahlne, 2006. "Commitment and opportunity development in the internationalization process: A note on the Uppsala internationalization process model," Management International Review, Springer, vol. 46(2), pages 165-178, March.
    12. Child, John & Rodrigues, Suzana B., 2005. "The Internationalization of Chinese Firms: A Case for Theoretical Extension?1," Management and Organization Review, Cambridge University Press, vol. 1(3), pages 381-410, November.
    13. Barry Naughton, 2007. "The Chinese Economy: Transitions and Growth," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262640643, December.
    14. Jane W. Lu & Paul W. Beamish, 2001. "The internationalization and performance of SMEs," Strategic Management Journal, Wiley Blackwell, vol. 22(6‐7), pages 565-586, June.
    15. Naidu, G. M. & Prasad, V. Kanti, 1994. "Predictors of export strategy and performance of small- and medium-sized firms," Journal of Business Research, Elsevier, vol. 31(2-3), pages 107-115.
    16. Lance Eliot Brouthers & Kefeng Xu, 2002. "Product Stereotypes, Strategy and Performance Satisfaction: The Case of Chinese Exporters," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 33(4), pages 657-677, December.
    17. Yuan Li & Mike Peng, 2008. "Developing theory from strategic management research in China," Asia Pacific Journal of Management, Springer, vol. 25(3), pages 563-572, September.
    18. Child, John, 2009. "Context, Comparison, and Methodology in Chinese Management Research," Management and Organization Review, Cambridge University Press, vol. 5(1), pages 57-73, March.
    19. Lianxi Zhou & Wei-ping Wu & Xueming Luo, 2007. "Internationalization and the performance of born-global SMEs: the mediating role of social networks," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 38(4), pages 673-690, July.
    20. Anthony Goerzen & Paul W. Beamish, 2003. "Geographic scope and multinational enterprise performance," Strategic Management Journal, Wiley Blackwell, vol. 24(13), pages 1289-1306, December.
    21. David M Brock & Oded Shenkar & Amir Shoham & Ilene C Siscovick, 2008. "National culture and expatriate deployment," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 39(8), pages 1293-1309, December.
    22. Zahra, Shaker A. & Garvis, Dennis M., 2000. "International corporate entrepreneurship and firm performance: The moderating effect of international environmental hostility," Journal of Business Venturing, Elsevier, vol. 15(5-6), pages 469-492.
    23. John Child & Suzana B. Rodrigues, 2005. "The Internationalization of Chinese Firms: A Case for Theoretical Extension?," Management and Organization Review, International Association of Chinese Management Research, vol. 1(3), pages 381-410, November.
    24. Lin Cui & Fuming Jiang, 2012. "State ownership effect on firms' FDI ownership decisions under institutional pressure: a study of Chinese outward-investing firms," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 43(3), pages 264-284, April.
    25. Rui, Huaichuan & Yip, George S., 2008. "Foreign acquisitions by Chinese firms: A strategic intent perspective," Journal of World Business, Elsevier, vol. 43(2), pages 213-226, March.
    26. Frances Fabian & Henry Molina & Giuseppe Labianca, 2009. "Understanding Decisions to Internationalize by Small and Medium-sized Firms Located in an Emerging Market," Management International Review, Springer, vol. 49(5), pages 537-563, October.
    27. Yuan Chen & Michael Young, 2010. "Cross-border mergers and acquisitions by Chinese listed companies: A principal–principal perspective," Asia Pacific Journal of Management, Springer, vol. 27(3), pages 523-539, September.
    28. Leonidou, Leonidas C. & Katsikeas, Constantine S. & Coudounaris, Dafnis N., 2010. "Five decades of business research into exporting: A bibliographic analysis," Journal of International Management, Elsevier, vol. 16(1), pages 78-91, March.
    29. Kevin Zheng Zhou & Laura Poppo, 2010. "Exchange hazards, relational reliability, and contracts in China: The contingent role of legal enforceability," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 41(5), pages 861-881, June.
    30. Jeffrey G. Covin & Dennis P. Slevin, 1989. "Strategic management of small firms in hostile and benign environments," Strategic Management Journal, Wiley Blackwell, vol. 10(1), pages 75-87, January.
    31. Kuivalainen, Olli & Sundqvist, Sanna & Servais, Per, 2007. "Firms' degree of born-globalness, international entrepreneurial orientation and export performance," Journal of World Business, Elsevier, vol. 42(3), pages 253-267, September.
    32. Du, Min & Boateng, Agyenim, 2015. "State ownership, institutional effects and value creation in cross-border mergers & acquisitions by Chinese firms," International Business Review, Elsevier, vol. 24(3), pages 430-442.
    33. Daphne W Yiu & ChungMing Lau & Garry D Bruton, 2007. "International venturing by emerging economy firms: the effects of firm capabilities, home country networks, and corporate entrepreneurship," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 38(4), pages 519-540, July.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Alessia Amighini & Claudio Cozza & Elisa Giuliani & Roberta Rabellotti & Vittoria Scalera, 2015. "Multinational enterprises from emerging economies: what theories suggest, what evidence shows. A literature review," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 42(3), pages 343-370, September.
    2. Ajai S Gaur & Xufei Ma & Zhujun Ding, 2018. "Home country supportiveness/unfavorableness and outward foreign direct investment from China," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 49(3), pages 324-345, April.
    3. Liu, Yi & Li, Yuan & Xue, Jiaqi, 2011. "Ownership, strategic orientation and internationalization in emerging markets," Journal of World Business, Elsevier, vol. 46(3), pages 381-393, July.
    4. Dirk Holtbrügge & Sue Claire Berning, 2018. "Market Entry Strategies and Performance of Chinese Firms in Germany: The Moderating Effect of Home Government Support," Management International Review, Springer, vol. 58(1), pages 147-170, February.
    5. Hu, Helen Wei & Cui, Lin, 2014. "Outward foreign direct investment of publicly listed firms from China: A corporate governance perspective," International Business Review, Elsevier, vol. 23(4), pages 750-760.
    6. Ilan Alon & John Anderson & Ziaul Haque Munim & Alice Ho, 2018. "A review of the internationalization of Chinese enterprises," Asia Pacific Journal of Management, Springer, vol. 35(3), pages 573-605, September.
    7. Liu, Xiaohui & Gao, Lan & Lu, Jiangyong & Lioliou, Eleni, 2016. "Does learning at home and from abroad boost the foreign subsidiary performance of emerging economy multinational enterprises?," International Business Review, Elsevier, vol. 25(1), pages 141-151.
    8. Wei, Tian & Clegg, Jeremy & Ma, Lei, 2015. "The conscious and unconscious facilitating role of the Chinese government in shaping the internationalization of Chinese MNCs," International Business Review, Elsevier, vol. 24(2), pages 331-343.
    9. Jones, Marian V. & Coviello, Nicole & Tang, Yee Kwan, 2011. "International Entrepreneurship research (1989–2009): A domain ontology and thematic analysis," Journal of Business Venturing, Elsevier, vol. 26(6), pages 632-659.
    10. Xiao, Simon Shufeng & Jeong, Insik & Moon, Jon Jungbien & Chung, Chris Changwha & Chung, Jaiho, 2013. "Internationalization and Performance of Firms in China: Moderating Effects of Governance Structure and the Degree of Centralized Control," Journal of International Management, Elsevier, vol. 19(2), pages 118-137.
    11. Wei, Yingqi & Zheng, Nan & Liu, Xiaohui & Lu, Jiangyong, 2014. "Expanding to outward foreign direct investment or not? A multi-dimensional analysis of entry mode transformation of Chinese private exporting firms," International Business Review, Elsevier, vol. 23(2), pages 356-370.
    12. Ping Deng & Andrew Delios & Mike W. Peng, 2020. "A geographic relational perspective on the internationalization of emerging market firms," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 51(1), pages 50-71, February.
    13. Tao, Fang & Liu, Xiaohui & Gao, Lan & Xia, Enjun, 2017. "Do cross-border mergers and acquisitions increase short-term market performance? The case of Chinese firms," International Business Review, Elsevier, vol. 26(1), pages 189-202.
    14. Zhou, Lianxi & Wu, Aiqi, 2014. "Earliness of internationalization and performance outcomes: Exploring the moderating effects of venture age and international commitment," Journal of World Business, Elsevier, vol. 49(1), pages 132-142.
    15. Li, Jian & Strange, Roger & Ning, Lutao & Sutherland, Dylan, 2016. "Outward foreign direct investment and domestic innovation performance: Evidence from China," International Business Review, Elsevier, vol. 25(5), pages 1010-1019.
    16. Dzikowski, Piotr, 2018. "A bibliometric analysis of born global firms," Journal of Business Research, Elsevier, vol. 85(C), pages 281-294.
    17. Sun, Zhe & Vinig, Tsvi & Hosman, Thomas Daniël, 2017. "The financing of Chinese outbound mergers and acquisitions: Is there a distortion between state-owned enterprises and privately owned enterprises?," Research in International Business and Finance, Elsevier, vol. 39(PA), pages 377-388.
    18. Vukicevic, Jelena & Fallon, Grahame & Ott, Ursula F., 2021. "A theoretical and empirical investigation into investment activities of technologically-intensive Chinese state-owned enterprises in the UK," International Business Review, Elsevier, vol. 30(1).
    19. Yoo, Dasun & Reimann, Felix, 2017. "Internationalization of Developing Country Firms into Developed Countries: The Role of Host Country Knowledge-Based Assets and IPR Protection in FDI Location Choice," Journal of International Management, Elsevier, vol. 23(3), pages 242-254.
    20. Anna Vuorio & Lasse Torkkeli & Liisa-Maija Sainio, 2020. "Service innovation and internationalization in SMEs: antecedents and profitability outcomes," Journal of International Entrepreneurship, Springer, vol. 18(1), pages 92-123, March.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:iburev:v:25:y:2016:i:2:p:522-534. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/133/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.